All Forum Posts by: Fred Cannon

@Colin Spivey. I would never turn down a 12 month lease to do a 3-6 month. If you screen the tenant properly and get a deposit why would you do a three month lease. I could see a 6 month lease if i was not getting response. If you are going to do three months you should furnish the unit and look for traveling professionals. Thee is a niche for that

@Chinmay J. Just be glad it wasn’t a new roof you had replaced by the big box store. I did a roof about 10 years ago with Lowe’s and had nothing but trouble with the “roofers” and no help from Lowe’s I still do business with Lowe’s but never have them do any sort of installation. They will not take ownership. I’m sure they take the lowest bid on every project so you get what you pay for.

@Jonathan Greene. I read some of these new investor questions and can see why you made the post. Things like I want to be a REI but I don't have any money can you tell me how to get my first deal. My goal is to have a 100 doors by next year. The other thing that bothers me is that people confuse wealth with debt, just my opinion. I have lived long enough to know the next recession or housing bust is somewhere out there in the future and fools that ring up a lot of debt will allow me to get some great deals. But in the meantime the price of investing is not giving great returns. For me I am putting money into my rentals and staying liquid in the stock market. If I find one deal a year I am satisfied.

@Jerell Edmonds. Don't be so eager when someone says come on in the water is fine. They may be an expert swimmer where you need a life vest I would advise to keep saving and keep looking. Does not matter if it is a SFH or a multi family home. It's all about being able to CYA when Mr Murphy comes knocking on your door. My first rental purchase was a one bedroom condo. I still own it and it has been a great moneymaker for me. It's worth 3 times what I paid for it but if I sold it and bought a 500k house with 25% down not sure I could cash flow more and if I didn't have a tenant for a month or two then my cash flow for the year would be negated. It's not so much about how much you own but more about how much you own of what you own. (Just my opinion ) You can be rich on paper and poor in life. A deed is not ownership, it only gives you the right to manage the property as long as you pay the mortgage. I don't get caught up in I want to own a 100 doors with 20% equity. That's a lot of work. I would rather own 20 doors with 100% equity, that's real wealth.

@Oneil Guntner if you take out a loan it is usually a 5 year limit on pay back so you would need to adjust your

Bills accordingly. Don’t take out a loan and then suspend your monthly savings because you can’t afford the loan and to save.

@Jennifer Hudgins. I have 5 units in a town 5 hours away and I manage them myself. I have a system of maintenance and repair folks that I can call on for most every need. I advertise on Zillow at no cost, know the past I used Craig’s List but have not liked the possible tenants. I have someone local that will show a property if needed. I can do my own screening and phone calls. It’s work but it is worth it. It’s hard to find properties that cash flow enough to offset PM fees.

@Jeremy A. I agree to not use bleach as it only cleans the surface. You can bleach and then come back and use a proper mold inhibitor but first find the cause. Or I have done this as well. Treat with a mold specific. Generally this will not remove the stain. Use bleach afterwards

@Charles Carillo. Yes, but maybe ask the neighbors if there are any close by. If you buy be sure you get tenants security deposit transferred to you at closing.

Have you discussed deposit.  You can do , first, last, and deposit to screen out someone with low cash reserves.  You can charge upfront admin fees for cleaning pest control.  If pet is involved you can add pet rent.  If a veteran is applying please give them first option.

@Ley Nezifort this year one of my tenants is getting an eviction notice for non payment of rent. They rest are getting a nice place to live.